Japan System Techniques : 【Delayed】Summary of Consolidated Financial Results for the First Quarter of Fiscal Year Ending March 31, 2022

			August 12, 2021
	Summary of Consolidated Financial Results
	for the First Quarter of Fiscal Year Ending March 31, 2022
	(Three Months Ended June 30, 2021)
			[Japanese GAAP]
Company name:	Japan System Techniques Co., Ltd.	Listing: Tokyo Stock Exchange, First Section
Stock code:	4323	URL: https://www.jast.jp
Representative:	Takeaki Hirabayashi, President and CEO
Contact:	Hiroyuki Norimoto, General Manager of General Affairs Department	Tel: [phone]
Scheduled date of filing of Quarterly Report:	August 13, 2021
Scheduled date of payment of dividend:	-
Preparation of supplementary materials for quarterly financial results:	None
Holding of quarterly financial results meeting:	None

Note: The original disclosure in Japanese was released on August 12, 2021 at 16:00 (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter Ended June 30, 2021 (April 1, 2021 - June 30, 2021)

(1) Consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating income	Ordinary income		Profit attributable to
			owners of parent
	Million yen		%	Million yen	%	Million yen		%	Million yen		%
Three months ended Jun. 30, 2021	4,900		-	342	-	348		-	237		-
Three months ended Jun. 30, 2020	3,746		(0.6)	(201)	-	(183)		-	(140)		-

Note: Comprehensive income (million yen)	Three months ended Jun. 30, 2021:	285	(-%)
		Three months ended Jun. 30, 2020:	(165)	(-%)
	Net income per share	Diluted net income per
	share
		Yen	Yen
Three months ended Jun. 30, 2021		43.08	42.96
Three months ended Jun. 30, 2020		(26.28)		-

Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020). All figures for the three months ended June 30, 2021 incorporate this accounting standard and comparisons with the first quarter of the previous fiscal year are omitted.

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio	Net assets per share
	Million yen	Million yen	%	Yen
As of Jun. 30, 2021	13,815	7,443	53.6	1,307.16
As of Mar. 31, 2021	12,861	6,850	53.0	1,265.96

Reference: Shareholders' equity (million yen) As of Jun. 30, 2021: 7,399 As of Mar. 31, 2021: 6,813

Note: Beginning with the first quarter of the fiscal year ending March 31, 2022, JAST has applied Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020). All figures as of June 30, 2021 incorporate this accounting standard.

2. Dividends

			Dividend per share
	1Q-end	2Q-end		3Q-end		Year-end	Total
	Yen	Yen		Yen		Yen	Yen
Fiscal year ended Mar. 31, 2021	-	0.00		-		28.00	28.00
Fiscal year ending Mar. 31, 2022	-
Fiscal year ending Mar. 31, 2022 (forecasts)		0.00		-		30.00	30.00

Note: Revisions to the most recently announced dividend forecast: None

3. Consolidated Earnings Forecasts for the Fiscal Year Ending March 31, 2022 (April 1, 2021 - March 31, 2022)

(Percentages represent year-on-year changes)

	Net sales		Operating income	Ordinary income	Profit attributable to	Net income per share
		owners of parent
	Million yen		%	Million yen	%	Million yen	%	Million yen	%	Yen
Full year	19,500		3.8	1,330	9.3	1,360	3.8	820	41.7	152.37
Note: Revisions to the most recently announced consolidated earnings forecasts: None

* Notes

(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None

Newly added: -

Excluded: -

1. Application of special accounting methods for presenting quarterly consolidated financial statements: None
2. Changes in accounting policies and accounting-based estimates, and restatements

1)	Changes in accounting policies due to revisions in accounting standards, others:	Yes
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting-based estimates:	None
4)	Restatements:	None

(4) Number of outstanding shares (common shares)

1) Number of shares outstanding at the end of the period (including treasury shares)

As of Jun. 30, 2021:	5,709,930 shares	As of Mar. 31, 2021:	5,612,230 shares
2) Number of treasury shares at the end of the period
As of Jun. 30, 2021:	48,923 shares	As of Mar. 31, 2021:	230,423 shares
3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2021:	5,519,393 shares	Three months ended Jun. 30, 2020:	5,362,514 shares

Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.

Note 2: Cautionary statement with respect to forward-looking statements

Forecasts of future performance in these materials are based on assumption judged to be valid and information available to the Company's management at the time the materials were prepared, but are not promises by the Company regarding future performance. Actual results may differ materially from the forecasts. Please refer to "1. Qualitative Information on Quarterly Consolidated Financial Performance, (3) Explanation of Consolidated Forecasts and Other Forward-looking Statements" on page 3 for forecast assumptions and notes of caution for usage.

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	2
(3)	Explanation of Consolidated Forecasts and Other Forward-looking Statements	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statements of Income and Comprehensive Income	6
	Quarterly Consolidated Statement of Income
	For the Three-month Period	6
	Quarterly Consolidated Statement of Comprehensive Income
	For the Three-month Period	7
(3)	Quarterly Consolidated Statement of Cash Flows	8
(4)	Notes to Quarterly Consolidated Financial Statements	9
	Going Concern Assumption	9
	Significant Changes in Shareholders' Equity	9
	Changes in Accounting Policies	9
	Additional Information	10
	Segment and Other Information	10
	Business Combinations	11

1

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first quarter of the current fiscal year, the Japanese economy was impacted by the continued effects of the government's repeated declaration of a state of emergency in certain areas and the enactmen t of priority measures to combat the spread of COVID-19 infections. As a result, there are still concerns about a possible economic downturn.

In the IT industry in Japan, according to the latest statistics in the "Survey of Selected Service Industries" by the Ministry of Economy, Trade and Industry (the final May 2021 figures), net sales continued to climb, rising 0.4% year on year in fiscal 2020 compared with 4.0% annual growth in fiscal 2019. However, due to the current increase in the impact of COVID-19 and other reasons, the outlook for the IT industry is extremely uncertain.

Consolidated sales and earnings of the Japan System Techniques Group (Japan System Techniques Co., Ltd. (JAST) and its consolidated subsidiaries, hereafter "the Group") in the first quarter posted net sales of 4,900 million yen (up 30.8% year on year), operating income of 342 million yen (vs. operating loss of 201 million yen in the same period of the previous fiscal year), ordinary income of 348 million yen (vs. ordinary loss of 183 million yen in the same period of the previous fiscal year), and profit attributable to owners of parent of 237 million yen (vs. loss attributable to owners of parent of 140 million yen in the previous fiscal year).

Business segment performance was as follows.

In the software business (individualized contracted software development), orders from the manufacturing and telecommunications industries and the finance/insurance/brokerage industry increased. As a result, net sales in this business totaled 3,425 million yen (up 26.1% year on year) and the operating income was 161 million yen (vs. operating loss of 148 million yen in the same period of the previous fiscal year ).

In the GAKUEN business (sale and related services of operational reform packages for sch ools), there were increases in IT equipment sales and sales of program products (PP) to universities. End user computing (EUC: individualized contracted development of related systems) and implementation support service sales decreased. Net sales in this business totaled 787 million yen (up 42.4% year on year) and the operating income was 169 million yen (vs. operating loss of 11 million yen in the same period of the previous fiscal year).

In the system sales business (IT equipment sales and IT/telecom infr astructure construction), sales in the university and public sector categories increased. Net sales in this business totaled 328 million yen (up 39.0% year on year) and operating income was 1 million yen (down 75.5% year on year).

In the medical big data business (inspections, analysis and related services for medical information data), sales of support services for health insurance organizations decreased. Sales of analysis services and services for notification of the cost of medical care and sales of automated inspection services for health insurance claims increased. As a result, net sales in this business totaled 358 million yen (up 49.2% year on year) and operating income was 9 million yen (vs. operating loss of 54 million yen in the same period of the previous fiscal year).

(2) Explanation of Financial Position

1) Balance sheet

Current assets at the end of the first quarter were 10,593 million yen, up 897 million yen from the end of the previous fiscal year. This was mainly due to decreases in accounts receivable-trade and contract assets and work in process, and an increase in cash and deposits due to higher contract liabilities. Non-current assets were 3,221 million yen, up 56 million yen from the end of the previous fiscal year.

Current liabilities at the end of the first quarter were 4,752 million yen, up 364 million yen from the end of the previous fiscal year. This was mainly due to an increase in accrued expenses, which is included in other, and contract liabilities, and decreases in provision for bonuses, short-term borrowings and income taxes payable. Non-current liabilities were 1,619 million yen, down 3 million yen from the end of the previous fiscal year.

Net assets at the end of the first quarter were 7,443 million yen, up 592 million yen from the end of the previous fiscal year. This was mainly due to exercise of share acquisition rights.

2

Japan System Techniques Co., Ltd. (4323) Financial Results for the First Quarter of FY3/22

Net assets increased as retained earnings were 81 million yen higher at the beginning of the fiscal year due to the application of the Accounting Standard for Recognition of Revenue.

2) Cash flows

Cash and cash equivalents increased 1,764 million yen from 4,853 million yen at the beginning of the current fiscal year to 6,617 million yen at the end of the first quarter of the current fiscal year.

Cash flows by category were as follows.

Net cash provided by operating activities totaled 1,808 million yen, a decrease of 116 million yen from 1,924 million yen provided in the same period of the previous fiscal year. This decrease was mainly due to increase s in inventories and contract liabilities, and a decrease in proceeds from the collection of trade receivables .

Net cash provided by investing activities totaled 5 million yen, an increase of 50 million yen from 45 million yen used in the same period of the previous fiscal year. This was due to a decrease in purchase of investment securities and an increase in proceeds from sales of investment securities.

Net cash used in financing activities totaled 82 million yen, a decrease of 69 million yen from 151 million yen used in the same period of the previous fiscal year. This was due to repayments of short-term borrowings, and increases in proceeds from disposal of treasury shares and proceeds from issuance of shares.

(3) Explanation of Consolidated Forecasts and Other Forward-looking Statements

There are no revisions to the May 13, 2021 forecasts for the fiscal year ending March 31, 2022: net sales of 19,500 million yen (up 3.8% year on year), operating income of 1,330 million yen (up 9.3% year on year), ordinary income of 1,360 million yen (up 3.8% year on year), and profit attributable to owners of parent of 820 million yen (up 41.7% year on year).

3